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Europe Daily Bulletin No. 10866
SECTORAL POLICIES / (ae) agriculture

Seven countries advocate caution in CMO regulation reform

Brussels, 13/06/2013 (Agence Europe) - Seven EU member states (the United Kingdom, Germany, Denmark, Sweden, Estonia, Latvia, the Czech Republic) submitted a joint statement at the Special Committee on Agriculture (SCA) on Monday 10 June, in which they call for reform of the single common market organisation (CMO) regulation not to be taken too far. This is one of the regulations that make up the common agricultural policy (CAP) reform package.

The Council mandate agreed on 19 March 2013 endorsed further moves towards greater market orientation of the CAP. “It is essential to maintain this approach”, the statement reads. The above countries consider that reform of the single CMO regulation should continue to provide a genuine safety net for severe market disturbance and help producers to cooperate without distorting the internal market. Farmers should not be burdened by unnecessary new regulation.

The seven countries in question support the following principles: - intervention prices and crisis management should be maintained at genuine safety net levels; - new financial aid should not be introduced or aid re-introduced once they have already been phased out, unless they are replaced by more market-orientated instruments; - cooperation through recognised producer organisations and inter-branch organisations should conform with current EU competition rules; - individual member states should decide if there is a need for formal recognition of producer organisations and inter-branch organisations in their territory; - rules on marketing standards should not be extended; - there is no justification for introducing a new bonus-penalty scheme in the dairy sector - the EU milk package, which should not be reopened, and the CAP safety-net provide practical tools for dairy farmers to use, and support in times of difficulty; - and crisis aid should only be granted in the event of a genuine crisis where the other measures in the SCMO regulation are insufficient. Any use of crisis aid should avoid negative impacts on the market and third parties, particularly developing countries.

These are important principles which can help to maintain progress towards greater market orientation in the CAP and prevent new costs and burdens for farmers, consumers and member states. (LC/transl.jl)

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